CBN to Introduce Rebate for Funds Remitted to Nigeria through IMTO, March 8
The Central Bank of Nigeria wilk on the 8th of March introduce a rebate of N5 for every $1of fund remitted Nigeria, through International Money Transfer Organization (IMTO).
The central bank governor, Godwin I. Emefiele disclosed this in his keynote address at the Fidelity Bank’s inaugural Diaspora Webinar on the Implementations and Impact of the new FX Policy on Diaspora Investments, on Saturday.
He said the CBN introduced the rebate in an effort to reduce the cost burden if remitting funds to Nigeria by working Nigerians in the Diaspora.
He said the rebate will be provided to the bank account of beneficiaries following receipt of remittance inflows.
According to him, “We believe this new measure will help to make the process of sending remittance through formal bank channels cheaper and more convenient for Nigerian ls in the Diaspora”.
He said beneficiaries of remittance flows through the IMTO shall only receive such inflows in foreign currency through any bank of their choice and the recipients have the sole decision to receive the foreign currency either in physical cash or instruct the bank to credit the fund to an ordinary domicilary account.
He also stated that IMTOs are mandated to unambiguously disclose to remittance beneficiaries that such recipients have exclusive discretion to decide the mode of payment adding that they must also ensure that all finds received in favour of beneficiaries in Nigeria are promptly deposited into the agents bank correspondent account.
The CBN governor noted that the policy is ained at increasing the transparency of remittance inflows, reducing rent-seeking activities, and providing Nigerians in the Diaspora with cheaper and more convenient ways of scenting remittances to Nigeria.
He further noted that the CBN was convinced that the new FX policy, by creating an easier, more flexible and more transparent system of remittance administration, will greatly enhance the benefits of Diaspora remittances in supporting investments and growth in Nigeria.
The CBN had earlier on Friday stated that the “CBN Naira 4Dollar Scheme”, is an incentive for senders and recipients if international Money Transfers.
The memo was addressed to all Deposit Money Banks, International Money Transfer Operators (IMTOs) and the general public and signed by the Director Trade and Exchange Department, A.S. Jibril.
The memo also stated that the policy was aimed to sustain the encouraging increase in inflows of Diaspora remittances into the country.
The memo further noted that all recepients of the Diaspora remittances through the CBN licensed IMTOs shall be paid N5 for every $1 received as remittance inflow.
“In light of this, the CBN shall, through commercial banks, pay to remittance recipients the incentive of N5 for every USD remitted by sender and collected by designated beneficiary. This incentive is to be paid to recipients whether they choose to collect the USD as cash across the counter in a bank or transfer same into their domiciliary a count account. In effect, a typical recipient of Diaspora remittances will, at the point of collection, receive not only the USD sent from abroad but also the additional N5 per aUSD received”.